Posted by Rich-CA on October 19, 2008 at 21:18:11:
Often states, like TX, charge more for an out of state corp or LLC to do business than they do one organized in state. As far as lawsuits, it does not matter as the lawsuit will most likely (not always) be filed in the state where the problem occurred. So let’s say you have a rental in FL where there is a slip and fall lawsuit. Owning company is a NV company. Lawsuit is filed in FL in a state court and a FL judge hands down a judgment. So where is the advantage of having the company in NV? You just spent your time and money defending yourself in FL (or your insurance company did) and they never have to go to NV unless there is a deficiency judgment and you have more property there and then its just to get the court to enforce the FL judgment.